S T A T E O F N E W Y O R K
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4039--A
2025-2026 Regular Sessions
I N S E N A T E
January 31, 2025
___________
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when
printed to be committed to the Committee on Ethics and Internal Gover-
nance -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the public officers law, the public authorities law and
the general municipal law, in relation to prohibiting certain persons
from receiving compensation for legal fees, consulting, or other work
performed for an industrial development agency, an economic assistance
corporation, or from a state or local authority and relating to
consultant disclosure requirements
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraphs (a) and (b) of subdivision 7 of section 73 of
the public officers law, as amended by section 3 of part K of chapter
286 of the laws of 2016, are amended and two new paragraphs (a-1) and
(b-1) are added to read as follows:
(a) No statewide elected official, or state officer or employee, other
than in the proper discharge of official state or local governmental
duties, or member of the legislature or legislative employee, or poli-
tical party [chairman] CHAIR shall receive, directly or indirectly, or
enter into any agreement express or implied for, any compensation, in
whatever form, for the appearance or rendition of services by [himself,
herself] THEMSELF or another in relation to any case, proceeding, appli-
cation or other matter before a state agency where such appearance or
rendition of services is in connection with:
(i) the purchase, sale, rental or lease of real property, goods or
services, or a contract therefor, from, to or with any such agency;
(ii) any proceeding relating to rate making;
(iii) the adoption or repeal of any rule or regulation having the
force and effect of law;
(iv) the obtaining of grants of money or loans;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07904-02-5
S. 4039--A 2
(v) licensing; or
(vi) any proceeding relating to a franchise provided for in the public
service law.
(A-1) NO STATEWIDE ELECTED OFFICIAL, OR STATE OFFICER OR EMPLOYEE,
OTHER THAN IN THE PROPER DISCHARGE OF OFFICIAL STATE OR LOCAL GOVERN-
MENTAL DUTIES, OR MEMBER OF THE LEGISLATURE OR LEGISLATIVE EMPLOYEE, OR
POLITICAL PARTY CHAIR SHALL RECEIVE, DIRECTLY OR INDIRECTLY, OR ENTER
INTO ANY AGREEMENT EXPRESS OR IMPLIED FOR ANY COMPENSATION, IN WHATEVER
FORM, FOR LEGAL SERVICES, CONSULTING, OR ANY OTHER CONTRACTUAL EXPENDI-
TURE FOR SERVICES, WHETHER ACTUALLY PERFORMED OR NOT FROM A STATE OR
LOCAL AUTHORITY IF SUCH STATEWIDE ELECTED OFFICIAL, STATE OFFICER OR
EMPLOYEE, MEMBER OF THE LEGISLATURE, LEGISLATIVE EMPLOYEE OR POLITICAL
PARTY CHAIR: (I) IS DIRECTLY CONTRACTED BY A STATE OR LOCAL AUTHORITY
FOR THE RELATED SERVICES; (II) OWNS OR CONTROLS DIRECTLY OR INDIRECTLY
TEN PER CENTUM OR MORE OF STOCK IN A CORPORATION THAT IS CONTRACTED BY A
STATE OR LOCAL AUTHORITY FOR THE RELATED SERVICES; OR (III) OWNS OR
CONTROLS TEN PER CENTUM OR MORE OF THE CAPITAL, PROFITS, OR BENEFICIAL
INTEREST IN A FIRM OR ASSOCIATION THAT IS CONTRACTED BY A STATE OR LOCAL
AUTHORITY FOR THE RELATED SERVICES.
(b) No political party [chairman] CHAIR in a county wholly included in
a city having a population of one million or more shall receive, direct-
ly or indirectly, or enter into any agreement express or implied for,
any compensation, in whatever form, for the appearance or rendition of
services by [himself, herself] THEMSELF or another in relation to any
case, proceeding, application or other matter before any city agency
where such appearance or rendition of services is in connection with:
(i) the purchase, sale, rental or lease of real property, goods or
services, or a contract therefor, from, to or with any such agency;
(ii) any proceeding relating to ratemaking;
(iii) the adoption or repeal of any rule or regulation having the
force and effect of law;
(iv) the obtaining of grants of money or loans;
(v) licensing. For purposes of this paragraph, the term "licensing"
shall mean any city agency activity respecting the grant, denial,
renewal, revocation, enforcement, suspension, annulment, withdrawal,
recall, cancellation or amendment of a license, permit or other form of
permission conferring the right or privilege to engage in (i) a profes-
sion, trade, or occupation or (ii) any business or activity regulated by
a regulatory agency of a city agency which in the absence of such
license, permit or other form of permission would be prohibited; [and]
OR
(vi) any proceeding relating to a franchise.
(B-1) NO POLITICAL PARTY CHAIR IN A COUNTY WHOLLY INCLUDED IN A CITY
HAVING A POPULATION OF ONE MILLION OR MORE SHALL RECEIVE, DIRECTLY OR
INDIRECTLY, OR ENTER INTO ANY AGREEMENT EXPRESS OR IMPLIED FOR, ANY
COMPENSATION, IN WHATEVER FORM, FOR LEGAL SERVICE, CONSULTING, OR ANY
OTHER CONTRACTUAL EXPENDITURE FOR SERVICES, WHETHER ACTUALLY PERFORMED
OR NOT FROM A STATE OR LOCAL AUTHORITY IF SUCH POLITICAL PARTY CHAIR:
(I) IS DIRECTLY CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR THE RELATED
SERVICES; (II) OWNS OR CONTROLS DIRECTLY OR INDIRECTLY TEN PER CENTUM OR
MORE OF STOCK IN A CORPORATION THAT IS CONTRACTED BY A STATE OR LOCAL
AUTHORITY FOR THE RELATED SERVICES; OR (III) OWNS OR CONTROLS TEN PER
CENTUM OR MORE OF THE CAPITAL, PROFITS, OR BENEFICIAL INTEREST IN A FIRM
OR ASSOCIATION THAT IS CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR THE
RELATED SERVICES.
S. 4039--A 3
§ 2. Section 2825 of the public authorities law is amended by adding a
new subdivision 1-a to read as follows:
1-A. NO PUBLIC OFFICER OR EMPLOYEE SHALL RECEIVE COMPENSATION FOR
LEGAL FEES, CONSULTING, OR ANY OTHER CONTRACTUAL EXPENDITURE FOR
SERVICES, WHETHER ACTUALLY PERFORMED OR NOT, FROM A STATE OR LOCAL
AUTHORITY IF SUCH PUBLIC OFFICER OR EMPLOYEE: (A) IS DIRECTLY
CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR THE RELATED SERVICES; (B)
OWNS OR CONTROLS DIRECTLY OR INDIRECTLY TEN PER CENTUM OR MORE OF STOCK
IN A CORPORATION OR THAT IS CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR
THE RELATED SERVICES; OR (C) OWNS OR CONTROLS TEN PER CENTUM OR MORE OF
THE CAPITAL, PROFITS, OR BENEFICIAL INTEREST IN A FIRM OR ASSOCIATION
THAT IS CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR THE RELATED
SERVICES.
§ 3. Section 801 of the general municipal law, as amended by chapter
1043 of the laws of 1965, is amended to read as follows:
§ 801. Conflicts of interest prohibited. Except as provided in section
eight hundred two of this chapter, (1) no municipal officer or employee
shall have an interest in any contract with the municipality of which
[he is] THEY ARE an officer or employee, when such officer or employee,
individually or as a member of a board, has the power or duty to (a)
negotiate, prepare, authorize or approve the contract or authorize or
approve payment thereunder (b) audit bills or claims under the contract,
or (c) appoint an officer or employee who has any of the powers or
duties set forth above [and], (2) no chief fiscal officer, treasurer, or
[his] THEIR deputy or employee, shall have an interest in a bank or
trust company designated as a depository, paying agent, registration
agent or for investment of funds of the municipality of which [he is]
THEY ARE an officer or employee, AND (3) NO MUNICIPAL OFFICER OR EMPLOY-
EE SHALL RECEIVE COMPENSATION FOR LEGAL FEES, CONSULTING, OR ANY OTHER
CONTRACTUAL EXPENDITURE FOR SERVICES, WHETHER ACTUALLY PERFORMED OR NOT,
FROM A STATE OR LOCAL AUTHORITY IF SUCH MUNICIPAL OFFICER OR EMPLOYEE:
(A) IS DIRECTLY CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR THE RELATED
SERVICES, (B) OWNS OR CONTROLS DIRECTLY OR INDIRECTLY TEN PERCENT OR
MORE OF STOCK IN A CORPORATION THAT IS CONTRACTED BY A STATE OR LOCAL
AUTHORITY FOR THE RELATED SERVICES, OR (C) OWNS OR CONTROLS TEN PERCENT
OR MORE OF THE CAPITAL, PROFITS, OR BENEFICIAL INTEREST IN A FIRM OR
ASSOCIATION THAT IS CONTRACTED BY A STATE OR LOCAL AUTHORITY FOR THE
RELATED SERVICES. The provisions of this section shall in no event be
construed to preclude the payment of lawful compensation and necessary
expenses of any municipal officer or employee in one or more positions
of public employment, the holding of which is not prohibited by law.
§ 4. The general municipal law is amended by adding a new section
858-c to read as follows:
§ 858-C. DISCLOSURE REQUIREMENT. 1. ANY INDIVIDUAL, FIRM, COMPANY,
DEVELOPER, OR OTHER ENTITY THAT PROVIDES CONSULTING SERVICES, INCLUDED
BUT NOT LIMITED TO LEGAL, LOBBYING, FINANCIAL ADVISORY, MARKETING, STRA-
TEGIC, OR OTHER PROFESSIONAL SERVICES TO AN APPLICANT OR BENEFICIARY OF
FINANCIAL ASSISTANCE FROM AN AGENCY IN CONNECTION WITH A PROPOSED OR
APPROVED PROJECT, SHALL BE REQUIRED TO SUBMIT A DISCLOSURE STATEMENT TO
THE AGENCY AND TO THE AUTHORITIES BUDGET OFFICE.
2. EACH DISCLOSURE STATEMENT SHALL INCLUDE THE FOLLOWING INFORMATION:
THE NAME OF THE INDIVIDUAL, FIRM, COMPANY, DEVELOPER, OR OTHER ENTITY
PROVIDING THE CONSULTING SERVICES; A DESCRIPTION OF THE NATURE AND SCOPE
OF THE SERVICES PROVIDED; THE DATES OR PERIOD OF ENGAGEMENT; THE TOTAL
AMOUNT OF COMPENSATION PAID OR PAYABLE FOR SUCH SERVICES; AND WHETHER
S. 4039--A 4
SUCH SERVICES WERE PROVIDED PURSUANT TO A CONTRACT, RETAINER, OR OTHER
ARRANGEMENT, AND A COPY OF SUCH AGREEMENT, IF AVAILABLE.
3. DISCLOSURE STATEMENTS SHALL BE SUBMITTED TO THE AGENCY AND THE
AUTHORITIES BUDGET OFFICE NO LATER THAN THIRTY DAYS FOLLOWING THE
EXECUTION OF THE SERVICE AGREEMENT OR THE COMMENCEMENT OF SERVICES,
WHICHEVER IS EARLIER. UPDATES SHALL BE FILED ANNUALLY BY JANUARY THIR-
TY-FIRST OF EACH YEAR FOR ONGOING ENGAGEMENTS.
4. ALL DISCLOSURE STATEMENTS SHALL BE MADE PUBLICLY AVAILABLE ON THE
WEBSITES OF THE AGENCY AND THE AUTHORITIES BUDGET OFFICE.
5. FAILURE TO FILE THE REQUIRED DISCLOSURE PURSUANT TO THIS SECTION
SHALL RESULT IN REFERRAL TO THE AUTHORITIES BUDGET OFFICE FOR FURTHER
INVESTIGATION. IN ADDITION TO THE POWERS PROVIDED FOR IN THIS CHAPTER,
THE AUTHORITIES BUDGET OFFICE SHALL HAVE THE POWER TO DISQUALIFY THE
CONSULTANT FROM PARTICIPATION IN FUTURE AGENCY PROJECTS FOR A PERIOD OF
UP TO TWO YEARS.
6. WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SUBDIVISION, THE
AUTHORITIES BUDGET OFFICE SHALL PROMULGATE SUCH RULES AND REGULATIONS AS
MAY BE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION, INCLUDING
A UNIFORM DISCLOSURE FORM.
§ 5. This act shall take effect immediately, and apply to contracts
entered into on or after such effective date.
